For the Quarter Ending September 2023
North America
Mixed Xylene prices have showcased a bullish rally across the US market throughout the third quarter of 2023 supported by the high upstream prices and improved demand dynamics. The feedstock Naphtha prices have increased which resulted in the high production cost of Mixed Xylene in the domestic market. On the upstream front, crude oil prices were persistently raised stems from the production cuts made by OPEC+, and more specifically by Saudi Arabia and Russia as well as a decline in US oil inventories. Currently, the US inventories are running at historically low levels. As per the latest Energy Information Administration report, stocks declined in the week by 17 million barrels, the largest drop since 1982. Furthermore, French supermajor Total Energies was forced to shut down a unit at its 225,000 barrels per day refinery at Port Arthur in Texas in the backdrop of the leaky pump, adding to other refinery outages that have pushed the US crude oil prices. In addition, signs of economic recovery, especially from the US are raising hopes of increased demand. Meanwhile, demand from the downstream derivative (m-xylene, o-xylene, p-xylene) has remained steady in the domestic market. Additionally, the US freight and chemical industries face a dual threat as scorching temperatures and prolonged hot weather are causing water levels on the Mississippi and Ohio rivers to decrease which in turn impacted the trade activities in the domestic market. As a ripple effect, prices of Mixed Xylene FOB Texas were settled at USD 1224/MT during September 2023.
Asia- Pacific
Mixed Xylene prices have continued to rise in the South Korean market throughout the third quarter of 2023. The cost pressure from feedstock Naphtha was sufficient as its prices settled on the higher end in the given time frame. International Crude oil prices are on the upswing in the wake of production cuts by Saudi Arabia and Russia which impacted the production cost of several commodities including Mixed Xylene. On the demand front, the inquiries from downstream derivatives (o-xylene, p-xylene, m-xylene) have increased due to a rise in consumption from the end-user which supported the prices of Mixed Xylene to follow an uptrend in the domestic market. At the same time, demand from the Chinese market has stable. The downstream procurements were mainly based on immediate requirements in the Chinese market. In terms of domestic production, the manufacturing firms were operating at normal rates due to increased downstream demand. Furthermore, material availability was sufficient to cater to overall downstream demand. Overall, there were no supply chain bottlenecks or port congestion were reported in the given time frame. Thus, prices of Mixed Xylene FOB Busan were settled at USD 979/MT during September 2023.
Europe
Mixed Xylene prices have witnessed a mixed trend in the European market during the third quarter of 2023. During the initial and mid of Q3, Mixed Xylene prices have increased significantly in the German market. The international Crude oil prices are on the upswing, driven by speculations of extended production cuts by OPEC+ nations which raised the prices of feedstock Naphtha, culminating in the increased production cost of Mixed Xylene in the domestic market. Furthermore, the firm inflationary pressure and high-interest rates have eroded the purchasing power of consumers. Meanwhile, demand from the downstream derivative (o-xylene, p-xylene, m-xylene) has been steady from the domestic market. The downstream procurements were mainly based on immediate requirements. However, towards the end of Q3, Mixed Xylene prices have inched lower in the domestic market. The manufacturing firms were operating at low rates as manufacturers were hesitant to build up excessive inventory in the domestic market. However, the availability of finished stocks of Mixed Xylene was sufficient to cater to overall demand, which weighed down the prices of Mixed Xylene in the domestic market. Furthermore, Germany's manufacturing purchasing manager’s index remained in the contraction zone, indicating a deterioration in the industrial and manufacturing activities. As a result, prices of Mixed Xylene FOB Hamburg were settled at USD 1176/MT during September 2023.
For the Quarter Ending June 2023
North America
Mixed Xylene prices have shown mixed sentiments in the US market during the second quarter of 2023. During the initial of Q2, Mixed Xylene prices have inched higher in the domestic market due to improved buying trends among the end-users. Although, cost support from feedstock Naphtha remained stagnant, as reported by market participants. Despite the economic woes, demand for Mixed Xylene from the downstream xylene value chain (p-xylene, o-xylene, and m-xylene) has increased with ample new orders in the domestic market. At the same time, demand from the overseas market has also improved, which further supported the prices to follow the uptrend in the domestic market. Although, due to the weak cost pressure from feedstock Naphtha, Mixed Xylene prices have decreased towards the mid and end of the quarter. The inquiries from the downstream p-xylene industry have declined as consumption from the PET, and PTA has slowed down amid firm inflation rates and rising interest rates. Thus, the offtake of Mixed Xylene has decreased from the domestic and overseas markets. Although demand from other sectors like o-xylene has remained active as the construction industry has gained pace, it didn't inflict the prices of Mixed Xylene at a higher level. In addition, the availability of finished stock of Mixed Xylene remained sufficient amid a decline in new orders, which weighed down the prices of Mixed Xylene in the domestic market.
Asia-Pacific
Mixed Xylene prices have shown fluctuation in the South Korean market during the second quarter of 2023. During the initial Q2, Mixed Xylene prices increased in the domestic market due to improved consumer sentiments. The inquiries from the downstream xylene value chain (m-xylene, p-xylene, o-xylene) have increased in the domestic market. At the same time, consumption from the overseas market has also risen, which supported the Mixed Xylene prices to follow the uptrend in the domestic market. Although, towards the mid and end of Q2, Mixed prices drastically declined due to weak feedstock prices and limited demand. The oversupply of feedstock Naphtha has limited the positive development of Mixed Xylene. On the demand front, the inquiries from the downstream p-xylene, m-xylene, and o-xylene have remained soft, resulting in declining consumption rates. In the meantime, demand from the Chinese market was also unsatisfactory amid the slow economic recovery, which promoted the manufacturers to drop their prices. In addition, the South Korean manufacturing purchasing manager's index increased slightly from 48.4 in May to 47.8 in June, still below the bar performance underlying a contraction in new orders.
Europe
Overall, Mixed Xylene (MX) prices have decreased in the German market throughout the second quarter of 2023 amid weak feedstock prices and limited downstream demand. The mounting inflationary pressure and rising interest rates by the European central bank to tame inflation have impacted the consumer's pocket. In addition, the German inflation rate increased in June to 6.4% year-on-year, from 6.1% YoY in May, which slowed down the economic growth in Europe's largest economy, Germany. In the meantime, demand for Mixed Xylene from the downstream xylene value chain m-xylene, p-xylene, and o-xylene has remained subdued amid sluggish buying sentiments among the end-users. The market transactions were relatively flat as purchasing enthusiasm of terminal firm to enter the market were not high. The ifo Business climate index dropped from 91.5 points to 88.5 points in June. On the upstream front, Naphtha prices have also been observed on the lighter side, which further weighed down the production cost of Mixed Xylene in the domestic market. In addition, the availability of finished stock of Mixed Xylene was also sufficient amid a decline in new orders. As a result, manufacturing firms reduced their operating rates as manufacturers were cautious about building up excessive inventories in the domestic market. Although the German manufacturing purchasing manager's index slightly increased from 43.2 in May to 46.0 in June, it is still below bar performance, indicating a contraction in industrial and manufacturing activity.
Mixed Xylene prices showed a see-saw trend in the USA market during the first quarter of 2023. During January, Mixed Xylene prices dropped on account of low buying trends in the region. Operating rates remained weak in the domestic market due to sluggish consumption from the downstream industries. Cost pressure from feedstock Toluene has eased, which resulted in the low production cost of Mixed Xylene in the region. In addition, demand for Mixed Xylene from the downstream value chain (o-xylene, p-xylene, and m-xylene) have remained gloomy from both the domestic and overseas market. Although, during February, Mixed Xylene prices increased, supported by the improved consumption from the downstream value chain industries. However, during March, Mixed Xylene prices gained a downward trend. The ribbing inflationary pressure and fears of a financial crisis amid the failure of two banks, Silicon Valley and signature bank, have exhausted the economic condition in the US market. Market participants reported the inventories of Mixed- Xylene in the US market were adequate to cater to the inquiries from the end-user market. As a result, prices of Mixed Xylene FOB Texas were assessed at USD 1119/MT during March 2023.
Mixed Xylene prices have witnessed fluctuation in China market during the first quarter of 2023. During the initial of Q1, Mixed Xylene prices decreased, backed by the low buying interest among end-users. Furthermore, stable demand and ample supply in the domestic market have further weighed down the prices of Mixed Xylene. In addition, cost pressure from feedstock Toluene has been reduced, which resulted in the low production cost of Mixed Xylene in the domestic market. Although, during mid and final of Q1, Mixed Xylene prices increased due to improved consumer sentients in the market. Demand from the downstream value chain industry has increased. Market participants reported a sharp rise in queries from the end-user. As a result, prices of Mixed Xylene Ex- Qingdao were offered at USD 1088/MT during March.
Prices of Mixed Xylene have witnessed mixed sentiments in the European market during the first quarter of 2023. During the initial and mid of Q1, Mixed Xylene prices increased as market participants restocked the material available in the region. Volatility in the crude oil prices and high inflationary pressure further supported the elevated prices of Mixed Xylene in the European region. On the other side, feedstock Toluene prices have also inched higher, which resulted in the high production cost of Mixed Xylene in the regional market, thus boosting the prices of Mixed Xylene in Europe. Although, during the final of Q1, Mixed Xylene prices declined as the market sentiment continued to deteriorate in the backdrop of macroeconomic devastation in the banking sector. Furthermore, cost pressure from feedstock Toluene has eased, resulting in the low production cost of Mixed Xylene in the region. However, market participants reported that demand for Mixed Xylene from the downstream value chain o-xylene, p-xylene, and m-xylene has remained stagnant while the sufficient inventories to cater to overall demand. Thus, prices of Mixed Xylene FOB Hamburg were settled at USD 1007/MT during March.
